Chapter 1: Building an Investor Profile

Chapter summary

Chapter 1 establishes what a registered representative must know before making any recommendation. Focus on the difference between financial and non-financial profile information, how to rank investment objectives by risk, and the three suitability obligations under FINRA Rule 2111. Regulation Best Interest defines the standard for broker-dealers; the fiduciary duty defines the standard for investment advisers. Know when each applies, what each requires, and how customer profile information drives both.

Key concepts

• Developing a Customer Profile
• Financial Considerations
• Non-Financial Considerations
• Financial Goals and Investment Objectives
• Regulation of Customer Interactions
• Developing a Customer Profile
• Financial Considerations
• Non-Financial Considerations
• Financial Goals and Investment Objectives
• Regulation of Customer Interactions
• Identify the financial and non-financial information a rep must colle...
• Distinguish Reg BI's four obligations (Care, Disclosure, Conflict of...

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